Cortland Bancorp Net Income Rises to $3.30M

CORTLAND, Ohio — Cortland Bancorp, holding company of Cortland Bank, reported Wednesday a second-quarter net income of $3.30 million, or 75 cents a share.

This compares to first-quarter net income of $1.54 million, or 35 cents per diluted share, and second-quarter net income of 2017 of $1.18 million, or 26 cents a share.

The board of directors approved a quarterly cash dividend of 11 cents per share, payable Sept. 4 to shareholders of record at close of business on Aug. 13.

In addition to the quarterly dividend, the board declared a special dividend for five cents per share, also payable Sept. 4 to shareholders of record on Aug. 13. The bonus dividend is in response to the enhanced semiannual performance of the company in 2018.

In a prepared statement, the president and CEO, James M. Gasior, said, “Our focus on operating efficiency and expense reduction measures taken throughout 2017, combined with our continued expansion in new markets and continued strong loan growth, are producing the desired results. Even without the increase in non-interest income resulting from a $1.6 million gain on a life insurance contract, quarterly earnings were up 48% year-over-year.”

Cortland Bancorp highlights include:

• Average total loans grew 13% to $458.33 million from $407.13 million for the second quarter a year ago.
• Average total deposits grew 6% to $557.19 million from the comparable quarter a year earlier.
• Nonperforming assets were 1.54% of total assets versus 1.13% a year ago.
• Cortland Bancorp remained well capitalized with total risk-based capital to risk-weighted assets of 14.30% and tangible equity to tangible assets of 9.33%.

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2017:

• Return on average equity, 21.77%, 10.13%, 7.98%.
• Return on average assets, 2%, 0.91%, 0.74%.
• Net interest margin, 3.74%, 3.62%, 3.56%.
• Efficiency ratio, 54.51%, 64.66%, 73.70%.

Net interest income was $5.70 million compared to $5.59 million the previous quarter and $5.02 million the year-ago quarter.

Noninterest income (includes mortgage servicing fees, debit and credit card fees) was $2.61 million, up from the $992,000 reported for the first quarter and $1.11 million the year-ago quarter.

Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $4.58 million compared to $4.32 million the preceding quarter and $4.32 million the quarter ended June 30, 2017.

Average assets were $661.30 million during the quarter compared to $676.17 million the first quarter and $634.70 million the year-ago quarter.

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